Listed in: Economics, as ECON-70
Edwin M. Truman (Section 01)
This seminar examines the process of international macroeconomic policy coordination over the past three decades, for example, to deal with the large U.S. current account deficit and associated global imbalances. We begin by considering various concepts of international economic policy coordination and the level and distribution of benefits from such activity. We will discuss the various instruments (monetary, fiscal, and exchange rate policies) and forums (IMF, G-7) of policy coordination. We will review a dozen or so episodes of actual or potential policy coordination starting with 1970 and the breakdown of the Bretton Woods regime. We will consider whether the diagnosis was right, the policy framework was agreed upon, the policy actions or inactions were appropriate, and what lessons were learned. Students will make a presentation and write a paper on one of these episodes. Requisite: Economics 33 or 53/57 or consent of the instructor. Limited to 20 students. Second semester. Visiting Lecturer Truman.